Société Générale / Risk Report - Pillar III

5 CAPITAL MANAGEMENT AND ADEQUACY REGULATORY CAPITAL

REGULATORY CAPITAL 5.3

Reported according to international financial reporting standards (IFRS), Societe Generale’s regulatory capital consists of the following components. Common Equity Tier 1 capital According to the applicable regulations, Common Equity Tier 1 capital is made up primarily of the following: ordinary shares (net of repurchased shares and treasury shares) and p related share premium accounts; retained earnings; p components of other comprehensive income; p other reserves; p minority interests limited by CRR/CRD4. p Deductions from Common Equity Tier 1 capital essentially involve the following: estimated dividend payments; p goodwill and intangible assets, net of associated deferred tax p liabilities; unrealised capital gains and losses on cash flow hedging; p income on own credit risk; p deferred tax assets on tax loss carryforwards; p deferred tax assets resulting from temporary differences beyond a p threshold; assets from defined benefit pension funds, net of deferred taxes; p any positive difference between expected losses on customer loans p and receivables, risk-weighted using the internal ratings-based (IRB) approach, and the sum of related value adjustments and collective impairment losses; expected losses on equity portfolio exposures; p value adjustments resulting from the requirements of prudent p valuation; securitisation exposures weighted at 1,250%, where these positions p are not included in the calculation of total risk-weighted exposures. Additional Tier 1 capital According to CRR/CRD4 Regulations, Additional Tier 1 capital is made up of deeply subordinated notes that are issued directly by the Bank, and have the following features: these instruments are perpetual and constitute unsecured, deeply p subordinated obligations. They rank junior to all other obligations of

the Bank, including undated and dated subordinated debt, and senior only to common stock shareholders; in addition, Societe Generale may elect, on a discretionary basis, not p to pay the interest and coupons linked to these instruments. This compensation is paid out of distributable items; they include neither a step-up in compensation nor any other p incentive to redeem; they must have a loss-absorbing capacity; p they migt be haicut or converted when in resolution or p independently of a resolution measurement; subject to the prior approval of the European Central Bank, Societe p Generale has the option to redeem these instruments at certain dates, but no earlier than five years after their issuance date. Deductions from Additional Tier 1 capital essentially apply to the following: AT1 hybrid treasury shares; p holding of AT1 hybrid shares issued by financial sector entities; p minority interests beyond the minimum T1 requirement in the p entities concerned. any positive difference between the sum of value adjustments and p impairment losses on customer loans and receivables exposures, risk-weighted using the IRB approach and expected losses, up to 0.6% of the total credit risk-weighted assets using the IRB approach; value adjustments for credit risk related to collective impairment p losses on customer loans and receivables exposures, risk-weighted using the Standardised approach, up to 1.25% of the total credit risk-weighted assets. Deductions from Tier 2 capital essentially apply to the following: Tier 2 hybrid treasury shares; p holding of Tier 2 hybrid shares issued by financial sector entities; p minority interests beyond the minimum capital requirement in the p entities concerned. All capital instruments and their features are detailed online ( www.societegenerale.com /Investors/Universal Registration Document and Pillar 3). Tier 2 capital Tier 2 capital includes: undated deeply subordinated notes (1) ; p dated subordinated notes; p

The undated deeply subordinated notes's remuneration will be paid from the distribuable profits for the purposes of the consolidated prudential regulation. (1)

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| SOCIETE GENERALE GROUP | PILLAR 3 - 2020